Funding acquisition of university and non-profit patent portfolios

ABSTRACT

A method for funding IP procurement for non-profits such as universities and other non-profits that conduct research, includes providing a fund to hold interests in intellectual properties of a non-profit organization, receiving investments from investors to add to the fund to fund acquisition of intellectual properties of the non-profit, by machine, storing information regarding the investments, intellectual properties, and the investors into a database and distributing shares in the fund according to the value of investments made in the fund.

BACKGROUND

Many universities and other non-profit organizations conduct importantand basic research in a variety of technical areas. Often that researchdeals with patentable concepts. In some instances, the research isfunded by outside sources such as private industry and/or governmentfunding. Often however, the universities and non-profits conductself-funded research. Given the financial environment for manyuniversities, the ability of such universities to fund a patent programand obtain protection on their novel and non-obvious contributions isoften limited.

SUMMARY

According to an aspect of the present invention, a method includesproviding a fund to hold interests in intellectual properties of anon-profit organization, receiving investments from investors to add tothe fund to fund acquisition of intellectual properties of thenon-profit, by machine, storing information regarding the investments,intellectual properties, and the investors into a database anddistributing shares in the fund according to the value of investmentsmade in the fund.

The following embodiments are within the scope of the invention.

The method includes distributing shares in the fund to the non-profitand valuing the shares of the fund according to a value of assets in thefund. The method includes redeeming shares in the fund by the non-profitbased on the valuation of the shares in the fund. The method includesdonating investor shares in the fund to the non-profit, and receiving aconfirmation of the donation and by machine storing informationpertaining to the donation in the database to reduce the number ofshares in the fund held by investors. The intellectual properties arepatents. The method includes by machine executing a valuation program tovalue shares in the fund. The method includes generating an agreementbetween the investor and the university, the agreement being a legallybinding document and by machine, storing the agreement in electronicform in a database. Producing the fund produces a first fund to fundintellectual property procurement over a specified first time period,and the method further includes producing additional funds that holdcorresponding additional interests in additional intellectual propertiesof the non-profit organization obtained over corresponding, additionalsubsequent time periods and by machine, storing information pertainingto the funds in a database. Valuing includes by machine, determining avaluation of shares in the fund based on assets in the fund by executinga valuation model that applies valuation principles to the assets in thefund, and reporting information concerning the value of fund shares toinvestors in the fund. The method includes generating reports thatrenders information that includes the fund for which an investor hasinvested, a valuation of the shares in the fund, changes in ownership ofshares in the fund; and profits generated by sales and/or licensing ofintellectual properties in the fund.

Tax deductions accrue for the investor after receiving shares in thefund. Investors donate shares in the fund immediately after investing bythe investor and tax deductions are based on an initial valuation of theshares in the fund that is related to the initial investment made by theinvestor. The intellectual properties of the fund are a right to receiveroyalties from licensing the intellectual properties. The non-profitorganization is a college or university. The tax deductions can be takenby the investor after donating shares in the fund to the non-profit,based on a valuation that is determined at the time of donating theshares in the fund to the non-profit. The investor can donate shares inthe fund after investing by the investor and tax deductions are based onan initial valuation of the shares in the fund that is related to theinitial investment made by the investor.

The investor can donate shares in the fund after acquisition ofintellectual property assets in the fund and after a valuation of thefund that is subsequent to the initial evaluation of the shares in thefund, and the tax deduction is based on the subsequent valuation of theshares in the fund, which is related to a value ascribed to assets inthe fund.

According to an additional aspect of the present invention, a system foradministering a funding mechanism for funding IP protection for anon-profit includes at least one computer configured to receiveinformation regarding a fund to hold interests in intellectualproperties of a non-profit organization; investments from investors toadd to the fund to fund acquisition of intellectual properties of thenon-profit; and to store information regarding the investments,intellectual properties, and the investors into a database.

According to an additional aspect of the present invention, a computerreadable medium tangible embodying a computer program product includinginstructions stored thereon. The instructions when executedadministering a fund that provides money to fund acquisition ofintellectual properties of a non-profit. The instructions cause aprocessor to access information regarding a fund that holds interests inintellectual properties of a non-profit organization and investmentsfrom investors that are added to the fund to fund acquisition ofintellectual properties of the non-profit. The program accesses adetermined valuation of shares in the fund based on assets in the fund.

One or more aspects of the invention may provide one or more of thefollowing advantages.

The invention provides a mechanism for private sources, e.g., investorsto fund patent procurement and procurement of other intellectualproperty mechanisms for non-profit organizations. Funding of suchprocurement could result in large royalty incomes for universities thatconduct successful research. At the same time, investors receive taxdeductions, whose values fluctuate with changes in valuations of assetsin the fund. Investors could take deductions at an initial stage thatwould correspond closely to the initial value of the investment or couldtake deductions that are far in excess of the initial value of theinvestments made by the investors, if the investors chose to hold theshares, and the underlying research and licensing efforts were highlysuccessful, resulting in appreciation of the assets in the fund, asexpressed through the periodic valuations of the fund shares.

DESCRIPTION OF DRAWINGS

FIG. 1 shows a block diagram representing transaction flows in producinga fund.

FIG. 2 shows a block diagram of a computing system that administers thefund of FIG. 2.

FIGS. 3A, 3B are a flow diagram of a fund administration process.

FIGS. 4A, 4B are a flow diagram of an alternate fund administrationprocess.

FIG. 5 is flow diagram of a process for reporting valuations for taxpurposes.

DETAILED DESCRIPTION

Referring to FIG. 1, an IP funding program 10 provides funding fornon-profit organizations 12 such as universities to procure intellectualproperty assets. The IP funding program 10 includes several parties: asyndicator 14; investors 16; the non-profit organization 12 and a taxingauthority 18. The term ‘syndicator’ 14 refers to an entity that sets upand/or manages one or more funds (one fund 20 shown in FIG. 1). Anon-profit 12 planning to fund research and seeking funding for patentor other intellectual property protection, contacts a syndicator 14 toset up fund 20. The fund 20 receives and holds interests 13 in theintellectual property assets generated by the non-profit organization 12pertaining to the research of the university that is the subject of theprogram 10. Such interest could be the entire right, title and interestin the properties or at least a right, e.g., an exclusive right, tolicense the intellectual property. In some embodiments, the syndicatorcan have a more limited role. For example, the syndicator 14 can be afacilitator that sets up the initial fund 20 and lets the universitymanage the fund 20 or can teach the university how to set up the fundand fully perform the role of a syndicator 14, as described above. Thus,in some embodiments, the university or other non-profit can fulfill therole of a syndicator 14.

In general, the intellectual property rights held by the fund 20 wouldencompass all forms of intellectual property, but would most likely bepatents and patent applications. Hereinafter, discussion of intellectualproperty rights will be directed towards patents and patentapplications, although other types of intellectual property could beincluded.

Investors 16 are solicited by the syndicator 14 to fund patentprocurement and licensing of university research. Specifically, manyuniversities conduct research in which funding is secured throughgovernment contacts and the like. Some research is conducted by otherfunding sources. Often the funding is inadequate to fund efforts toprotect intellectual property, e.g., patent developments that flow fromthat research. In some instances, the universities conduct self-fundedresearch and do not have the funds to procure patent protection for theresearch. At the behest of the syndicator 14, the investors 16 provideinvestments 17 to the fund 20. The investments in the fund 20 are usedby the universities to fund patent protection at least for work that isnot otherwise funded. These investments are held by the fund 20. Thefund 20, as mentioned above, also holds rights in certain non-profitdevelopments. In return for funding of the patent protection for thenon-profit, the investors 14 receive shares 22 in the fund 20.

Several approaches can be used to determine the initial number and valueof the fund shares 22. For example, the syndicator 14 and the non-profit12 enter into an agreement, in which the university would retain apercentage of the number of fund shares sold by the fund to investors16. Thus, in one non-limiting example, the university 12 enters into anagreement in which the university agrees to place patent and patentapplication assets from specific research projects into the fund 20 andin exchange retain a percentage ownership in the fund shares, e.g.,fifty percent (50%) of the shares 22 in the fund 20. The balance of thefund shares 22, e.g., fifty percent (50%) is held by the investors 16.Thus, for an initial investment 17 of $100,000 by investors 16, theinvestors would receive, e.g., 100 shares (each share being worth $1000)and the university would also own, e.g., 100 shares (each share beingworth $1000). The university uses the funds 25 to pay fees of thirdparty providers 24, (consultants, attorneys, governmental agencies,etc.) associated with securing intellectual property rights, e.g.,patent rights.

With the help of a syndicator 12, investors 14 provide the non-profit 12with funding needed to protect intellectual property assets in returnfor shares 22 in the fund 20 (or funds) produced to hold intellectualproperty assets. The shares 22 represent an interest in the fund andwhen donated back to the non-profit can be used to reduce the taxes thatthe investors 14 would otherwise pay in the future.

As the university 12 conducts covered research, and developsintellectual property, e.g., patent assets for the fund 20, the thirdparty providers 24, the university and/or the fund syndicator marketsthose patent assets to raise licensing revenues or revenues fromoutright sale of the patent assets. As revenues 26 enter the fund, e.g.,from licensees, etc. and the fund acquires other IP assets (additionalpatents and patent applications), and as the fund ages, these amongother factors discussed below are used in valuation models to assignmonetary values to the fund shares 22. Different valuation models may beused to value the fund shares corresponding to different stages of thefund. For example, a valuation model that heavily weights the valuationof the fund based on the initial investment in the fund would be used atthe inception of the fund, a valuation model that weights the valuationof the fund less based on the initial investment and more based on theexpenditures made in securing the assets may be used in a subsequentstage, whereas a valuation model that weights the valuation based onactual licensing revenues would be used at a later stage in the fund.

After the fund 20 is established and shares distributed to investors,the investors can use the shares 22 in various ways. The investorsgenerally seek tax deductions. The investor can receive an immediate taxdeduction by donating some or all of its shares back to the universityat the initial formation of the fund 20. Alternatively, the investor canhold the fund shares 22 and periodically receive valuations for the fundshares 22. At any point, up to the time the fund ceases to operate(e.g., due to a termination event, e.g., abandoning of the intellectualproperty assets, expiration of the intellectual property assets and soforth), the investor can donate some or all of the shares back to theuniversity and receive a tax deduction at a current valuation of thefund shares 22.

In one type of deduction, the deduction would be in the form of acharitable deduction that can be used to offset income. The taxingauthority can be at any level of government, e.g., federal, state,county, or city level government that taxes income and allows forcharitable deductions, with federal being an especially significantauthority.

In addition to the fund having a termination date that ends with theenforcement rights of the patents, e.g., expiration of licenses orpatents, the fund can have an end date that is at a fixed period, e.g.,five years after filing of patent applications or granting of patents.In either event, the university would value the shares and notifyinvestors that they need to take a deductions, as discussed below.

A syndicator 14 is an entity that works primarily as a middleman betweeninvestors 14 and universities 12 in the IP funding program 10. Thesyndicator's responsibilities include finding universities with researchthat could be used in a program 10, persuading investors 14 to invest inthe funds in exchange for tax deductions 26, and underwriting agreementsbetween universities 12, funds, 20 and investors 14.

A syndicator 14 may act as a clearing-house to assist investors byspreading their investment among many funds at many non-profits, e.g.,universities, to diversify their deduction basis. A syndicator 14 mightevaluate the feasibility of individual research organizations. Mostlarge investors 14 would rather choose a syndicator 14 carefully and letthe syndicator 14 study the individual funds 20. The responsibilities ofthe syndicator 14 can also include developing standard legal documents.Standardization of legal documents facilitates origination of the fundsbetween universities 12 and investors 14 and helps to avoid problemswith loopholes that might be present in individual or non-standard legaldocuments. Syndicators 14 might perform an asset management function onbehalf of investors 14 to help detect and resolve problemsexpeditiously.

A syndicator 14 can pool IP properties from various universities into afund to help make investing more efficient and enable safeguards to bebuilt into the fund. The syndicator 14 frequently charges a fee or setsaside a small percentage of the investor's money as a fund reserve to beused to deal with unforeseen future problems. At initial stages the feecan be paid by the university out of universities share of funds, so asnot to dilute the deduction value of the investments made by theinvestors, whereas at later stages, the fees can be taken out of profitsgenerated by the fund and would be merely an expense that is consideredin valuation of fund shares. Fund reserves might be held in addition tothe fee but may be returned to the investor 14 in the form of fundshares if they are not used.

Syndicators 14 also ensure that the funds are audited and that theinvestors 14 receive accurate valuation information in time for theirtax return deadlines. Syndicators 14 would preferably have the followingcapabilities: relations with universities 12 and links to a broad baseof investors 14, preferably in collaboration with one or more financialintermediaries; legal documents that protect the investor 14 from risksand that protect the syndicator 14 from false claims by investors 14. Asyndicator 14 would preferably have lawyers to negotiate finaldocuments; and asset managers to oversee the progress of a fund andlicensing professionals to exploit the intellectual property assets.

Of course, administrators that are set up by the syndicators 14 cancarry out some of the day-to-day operations of the funds. Afterinception, the syndicators 14 can leave the fund to be operated by theadministrator, which can be the non-profit, e.g., university itself.

Some benefits of the program 10 to universities include funding ofpatent protection for research in those situations where patentprotection is either unfunded or under-funded, and concomitant therewithfreeing funding for other purposes. In addition, the program enablesuniversities to have the potential for significant future royaltyincome. For investors, the program gives them a mechanism to targetfunding of such efforts, while receiving immediate tax deductions, ordeferred tax deductions that could significantly appreciate over the taxdeduction potential of their initial investment.

Referring to FIG. 2, a machine 40 embodied for example as a networkedcomputing system is configured to administer the funding program 10. Auser access databases 48 via a client computer 41 connected to a remoteserver 46 over a network 42. Multiple users could access the databasesusing multiple client computers or machines connected to the network 42.The users could be the non profit 12, syndicator 14, and investors 16.The non profit funding program 10 may be implemented using softwareoperable on the remote server 46 and the client computer 41. Thesoftware causes the computing environment 40 to perform functionsspecified by the user. Such functions performed by the user couldinclude searching Intellectual property allocated to the fund,allocating fund shares 26 to investors 14, storing agreements betweenthe university and the syndicator and agreements between the universityand investors 14, recording interest in the Intellectual propertyassets, e.g., patent assignments 28, tracking the Intellectual propertyassets, valuing fund shares, and generating custom reports.

In order to implement the non profit funding program 10, the softwaremay access information related to agreement terms, investments amounts,licenses and records that pertain to income generated by theIntellectual Property assets stored in databases 48. The databases canbe on the same remote server 46 as the software or a different remoteserver (not shown). In some implementations, the non-profit 12,syndicators 14, and can investors 16 can communicate with the server 46over a network 46, for example, a direct dial connection, a local areanetwork (LAN), a larger group of interconnected systems such as theInternet, a private intranet, or other similar wired or wirelessnetwork. Furthermore, the network 42 depicted is simplified for ease ofexplanation. The network 42 can include more or fewer additionalelements such as networks, communication links, proxy servers, firewallsor other security mechanisms, Internet Service Providers (ISPs),gatekeepers, gateways, switches, routers, hubs, client terminals, andother network elements.

A suitable network protocol, such as the TCP/IP protocol, may be usedfor the communications. Communications through the network 42 may besecured with encryption, a security protocol, or other type of similarsecurity mechanism. Communications through the network 42 can includeany kind and any combination of communication links such as modem links,Ethernet links, cables, point-to-point links, infrared connections,fiber optic links, wireless links, cellular links, satellite links, andother similar links.

The client computer 41 or user may be any computer or computers used bythose skilled in the art, and such client computers 41 may allow remoteusers to access the system 40. The client computer 41 may comprise acentral processor unit (CPU) and main memory, an input/output interfacefor communicating with various databases, files, programs, and networks(such as the Internet), and one or more storage devices, such as a harddisk. The client computer 41 may also have a monitor or other screendevice and an input device, such as a keyboard or a mouse. The clientcomputer may also have some software programs contained in the mainmemory or the storage devices which can be used by the CPU. In oneembodiment, a web browser, may be part of the software programs on theclient computer 41. The central processing unit may use the browsersoftware package to display information from a web page on a monitor.

The server 46 may comprise web servers and application servers or anycombination thereof, and may be any computer known to those skilled inthe art. The web servers and the application servers can be separateentities, or may exist within a single computer or computer system. Thespecification will refer to both possibilities as remote server 46. Theserver 46 allows access by the users to information stored in databases48. Databases 48 could also be a single database. The server 46 may beseparated and protected from the network 42 by a security mechanism suchas a firewall. The server 46 may also have access, via the network 42,to external data sources.

Referring to FIGS. 3A, 3B, an example of a process 60 for conducting thefund program 10 is shown. In this process 60, a university 12 plans toor conducts 62 research that is not sufficiently funded to secure patentrights. The university will own the entire right, title and interest inany patents or other intellectual property that results from theresearch, or at the very least the right to license such rights andassign such license rights to the fund. The university contacts 64 asyndicator 14, which in some embodiments can be the university or an armof the university, or a third party. The syndicator 14 sets up 66 afund, to secure and seek, e.g., patent rights. The syndicator finds 68investors who invest, e.g., $100,000, into the fund set up by thesyndicator 14. Since, the university's total costs for research anddevelopment likely would be in excess of the value invested by theinvestors 16, the university 12 receives 70 (in this example) fiftypercent (50%) of shares in the fund, with the investors receiving 72 thebalance of the shares. If the initial fund shares are 100, then eachfund share would be valued at $1000 per share. In this example, theuniversity's commitment of the Intellectual Property corresponds to invalue that is equal to the value committed by the investors 14. At thispoint investors 14 can take a tax deduction (or tax credit discussedbelow) if the investors donated part or all of their shares back to theuniversity. The program 10 determines whether any of the investorsdonated shares to the university 74. If a donation was made to theuniversity, the donation is reported to the fund 20 by the university,so that the fund 20 can transfer 76 ownership of the fund shares to theuniversity.

Thereafter, assuming that the syndicator receives 72 a five percent (5%)fee for placing the fund 20, in place and the syndicator 14 and/or theuniversity 12 seeks patent protection for university sponsored research.The fund would have a total of $95,000 to fund the patent protection.

Thereafter, the university files patent applications and assigns orotherwise conveys rights 80 in the patent applications to the fund 20.Periodically, the fund administrator executes 82 a computer program onone of the computers discussed above to run a valuation mode to valuethe fund shares. The fund shares are valued to ascertain values of theshares for tax purposes. Several valuation models can be executed toestablish valuations. Such models would be known to persons of ordinaryskill in the art. Valuation models would take into consideration thestage of the fund 20. Typically valuations would take place once a year,e.g., at the close of the fund's tax year. The program can alsodetermine a value of the assets in the fund based on economic valuationprinciples applied to the assets in the fund and reporting thatinformation concerning the value placed on assets in the fund to thenon-profit and to the investors in the fund. Reports that are generatedcan be displayed on client systems 41, as well as reported via e-mail,regular mail and so forth. The information would include the fund(s) inwhich an investor has invested funds into, the current valuation(s) ofthe share(s) received by the investors, historical valuation(s), changesin ownership of shares in the fund(s) and profits generated by salesand/or licensing of intellectual properties in the fund(s), as well asadministrative expenses.

The fund 20 can be set up as a non-profit type entity, or as an entitythat would not be responsible for tax payments.

Valuation models would consider factors such as an assessment of currentinventory (jurisdictions, expiration dates, planned filings/protection,retention of license-back provisions), assessment of current inventorystrength (e.g., detection of infringement, whether invention commandsprice premium over competition, alternate technology available,remaining useful life of technology, past licensing, operating profitsfrom products/services employing IP, market share of products/servicesemploying IP, barrier to entry, capital requirements relative to IP,bargaining power of customers and bargaining power of suppliers.Valuation companies using proprietary models customarily value IP assetsand explanation of how IP is valued is not the purpose here.

As the IP assets, e.g., patent applications issue into patents, theassets age, and licensing revenues would also be taken intoconsideration. In any event, e.g., once a year the fund would publish 82to its investors a valuation of the fund shares. At any point in thelife of the fund, the investors could donate 84 any remaining fundshares to the university and take a tax deduction for the value of thefund shares, based on the current valuation at the time of donation. Ifshares are donated, the ownership in the shares is changed 85 to thebeneficiary, e.g., the university. The process 60 determines 86 whetherthere are any more investor, non-donated shares. If there are no more,the fund can be terminated and any remaining assets in the fund can beconveyed to the university.

Alternatively, if there are more investor non-donated funds shares left,the process 60 determines 88 if the fund is at a fund termination eventand if it is it sends 90 a final report to at least the remaininginvestors, indicating that a donation must be made in order to securetax donations. If the process 60 is not at a fund termination event, theprocess 60 determines a new valuation. However, the valuation can awaitthe end of tax year, it need not be done each time fund shares aredonated, although that is certainly one way in which the fund can beoperated.

In order to secure all funds in the fund for the university theagreement between the university and the investors can specify that atfinal valuation all fund shares are automatically conveyed to theuniversity and a final report is prepared and sent to the investors fortax purposes.

The university can redeem either its shares or donated shares for cashfrom the fund. Redemption would be conducted using sound financialprincipals ensuring that sufficient cash reserves remain to secure andmaintain any intellectual property held by the fund. Of course, at theend of the fund, (e.g., fund terminating event or receipt of allinvestor shares) any remaining assets (IP and cash) in the fund would betransferred to the university.

For research that was not successful, the fund shares could be worthless than the original value of the investment made by the investors, ifthe investors chose to hold the shares, whereas for research andlicensing efforts that were highly successful, the investors couldreceive tax deductions far in excess of the initial value of theinvestments made by the investors, due to appreciation of the assets inthe fund as expressed through the periodic valuations of the fundshares.

A non-profit, e.g., university can have one or more outstanding funds 20at any given time. Administration of a fund 20 would be simplified ifthe funds were closed to new investment on a periodic basis, e.g.,annually. In other embodiments, the funds can remain open, seeking newinvestors if and when additional funding is needed to procureintellectual property protection. In this manner, investors who electedto hold on to shares can delay taking the tax deductions for an extendedperiod of time, since it is less likely that a fund terminating eventwould occur. It is also on average more likely that the value of theshares and hence value of the deductions would increase. Such a type offund could be considered a revolving type fund, the details of which arediscussed below.

Referring to FIGS. 4A, 4B, an alternative embodiment 60′ of a processfor conducting the fund program 10 is shown. In this embodiment, thefund 20 is a revolving type of fund, with no specified termination date.In this example, a university 12 plans to or conducts 62 research thatis not sufficiently funded to secure patent rights, contacts 64 asyndicator 14, which sets up 66, as discussed in FIGS. 3A, 3B. Thesyndicator finds 68 investors and the university 12 receives 70 apercentage of shares with the investors receiving 72 the balance of theshares. The program 10 determines whether any of the investors donatedshares to the university 74. If a donation was made to the university,the donation is reported to the fund 20 by the university, so that thefund 20 can transfer 76 ownership of the fund shares to the university.The syndicator receives 72 a fee for placing the fund 20 and thesyndicator 14 and/or the university 12 seeks patent protection foruniversity sponsored research.

Thereafter, the university files patent applications and assigns orotherwise conveys rights 80 in the patent applications to the fund 20.Periodically, the university conducts new, different research andgenerates new, covered IP, e.g., patents whose rights are transferred byuniversity to the fund 20. New valuations are determined based onvaluation models, e.g., as discussed above. In addition, periodicallythe fund can receive additional donations from existing and/or newinvestors and issue additional fund shares. Thus, along with any new IPadded to the fund, the fund shares are revalued.

The fund administrator executes 82 a computer program on one of thecomputers discussed above to run a valuation model to value the fundshares. The fund shares are valuated to ascertain values of the sharesfor tax purposes, as discussed above. The valuation models unlike theexample discussed above would taken into consideration the new donationsand the new IP added to the fund, e.g., the revolving nature of thefunding process 60′.

As the IP assets, e.g., patent applications issue into patents, theassets age, and licensing revenues would also be taken intoconsideration. In any event, e.g., once a year the fund would publish 82to its investors a valuation of the fund shares. With the revolving typeof fund, generally there may not be any specific type of terminatingevent. Although, the fund could be terminated if all investor shares hadbeen donated. At any point in the life of the fund, the investors coulddonate 84 remaining fund shares to the university and take a taxdeduction for the value of the fund shares, based on the currentvaluation at the time of donation. If shares are donated, the ownershipin the shares is changed 85 to the beneficiary, e.g., the university.The program 60′ determines 86 whether there are any more investor,non-donated shares. If there are no more, the fund can be terminated andany remaining assets in the fund can be conveyed to the university. Eventhis type of revolving fund could have terminating events 88 if desired.

If the process 60 is not at a fund termination event 88, the process 60determines 80 a new valuation. If the fund has no more outside investorsor reaches a terminating event, a final report can be generated 90, asdiscussed above. However, as discussed above, the valuation can waituntil the end of a tax year as with the report. Also, the valuation neednot be performed each time fund shares are donated, although that iscertainly one way in which the fund can be operated. Thus, any timeperiod can be chosen to value the fund shares.

The revolving type of fund has additional benefits for investors. Aswith the previous embodiment, for research that was not successful, thefund shares could be worth less than the original value of theinvestment made by the investors, if the investors choose to hold theshares, whereas for research and licensing efforts that were highlysuccessful, the investors could receive tax deductions far in excess ofthe initial value of the investments made by the investors, due toappreciation of the assets in the fund as expressed through the periodicvaluations of the fund shares. However, since the fund is a revolvingtype of fund the risk of failure of university or other non-profitresearch is minimized. That is, because the fund will cover manydifferent research projects possible in a variety of fields, and thusthe risk of failure is averaged out over all of those projects.

Referring FIG. 5 a process 100 for donating and tracking of fund sharesis shown. After the shares have been distributed to investors 14, theshares are tracked and information on the shares is periodically updatedin a database or the like by a computer database program, bookkeepingprogram, or the like.

If the system is notified 102 from the university, either via mail,paper electronically and so forth, that a donation of shares was made,the system determines 104 the particulars of the donation. For example,the system will access the database and determine the current sharebalance of the donor investor and the current valuation of the donatedshares, in order to determine a total value of the investor's donation.The system will compile 106 the data into a report or letter that isthen sent 106 to the investor as a record of the donation for taxpurposes.

Thus, in one embodiment, the system would access records pertaining tothe investor 14, including contact information, fund information (ifmultiple funds are managed) and share information, e.g., the number ofshares. The system would also access the latest valuation of thoseshares and determine a value of the fund shares for tax purposes. Thiscould be automatically or manually recorded in e.g., a letter that issent to the investor for the investor's tax records. Currently, in theUnited States, any single transaction that accounts for tax deductionsin excess of $350 to the same organization must have written proof fromthe receiving organization. Either the fund 20 or the universitygenerates this written proof and sends it to the investor.

The universities can redeem shares in the fund for cash after sufficientreserves are maintained to fund IP protection for committed research.When the fund closes due to either donation of all investor shares or afund termination event, any balance of cash in the fund is given to theuniversity.

The program 10 may be implemented, in part, by one or more programmableprocessors executing a computer program to perform functions of theprogram 10 by operating on input data and generating output. The program10 may also be implemented, in part, using special purpose logiccircuitry, e.g., an FPGA (field programmable gate array) or an ASIC(application specific integrated circuit).

Processors suitable for the execution of a computer program include, byway of example, both general and special purpose microprocessors, andany one or more processors of any kind of digital computer. Generally, aprocessor will receive instructions and data from a read only memory ora random access memory or both. The essential elements of a computer area processor for executing instructions and one or more memory devicesfor storing instructions and data. Generally, a computer will alsoinclude, or be operatively coupled to receive data from or transfer datato, or both, one or more mass storage devices for storing data, e.g.,magnetic, magneto optical disks, or optical disks. Information carrierssuitable for embodying computer program instructions and data includeall forms of non volatile memory, including by way of examplesemiconductor memory devices, e.g., EPROM, EEPROM, and flash memorydevices; magnetic disks, e.g., internal hard disks or removable disks;magneto optical disks; and CD ROM and DVD-ROM disks. The processor andthe memory can be supplemented by, or incorporated in special purposelogic circuitry.

To provide for interaction with a user, embodiments of the invention canbe implemented on a computer having a display device, e.g., a CRT(cathode ray tube) or LCD (liquid crystal display) monitor, fordisplaying information to the user and a keyboard and a pointing device,e.g., a mouse or a trackball, by which the user can provide input to thecomputer. Other kinds of devices can be used to provide for interactionwith a user as well; for example, feedback provided to the user can beany form of sensory feedback, e.g., visual feedback, auditory feedback,or tactile feedback; and input from the user can be received in anyform, including acoustic, speech, or tactile input.

Embodiments of the invention can be implemented in a computing systemthat includes a back end component, e.g., as a data server, or thatincludes a middleware component, e.g., an application server, or thatincludes a front end component, e.g., a client computer having agraphical user interface or a Web browser through which a user caninteract with an implementation of embodiments of the invention, or anycombination of such back end, middleware, or front end components. Thecomponents of the system can be interconnected by any form or medium ofdigital data communication, e.g., a communication network. Examples ofcommunication networks include a local area network (LAN) and a widearea network (WAN), e.g., the Internet.

The system and method of the invention may use the “World Wide Web” (Webor WWW), which is that collection of servers on the Internet thatutilize the Hypertext Transfer Protocol (HTTP). HTTP is a knownapplication protocol that provides users access to resources, which maybe information in different formats such as text, graphics, images,sound, video, Hypertext Markup Language (HTML), as well as programs.Upon specification of a link by the user, the client computer makes aTCP/IP request to a Web server and receives information, which may beanother Web page that is formatted according to HTML. Users can alsoaccess other pages on the same or other servers by followinginstructions on the screen, entering certain data, or clicking onselected icons. It should also be noted that any type of selectiondevice known to those skilled in the art, such as check boxes, drop-downboxes, and the like, may be used for embodiments of the invention usingweb pages to allow a user to select options for a given component.Servers run on a variety of platforms, including UNIX machines, althoughother platforms, such as Windows 2000, Windows NT, Sun, Linux, andMacintosh may also be used. Computer users can view informationavailable on servers or networks on the Web through the use of browsingsoftware, such as Netscape Navigator, Microsoft Internet Explorer,Mosaic, or Lynx browsers. The computing system can include clients andservers. A client and server are generally remote from each other andtypically interact through a communication network. The relationship ofclient and server arises by virtue of computer programs running on therespective computers and having a client-server relationship to eachother.

A number of embodiments of the invention have been described.Nevertheless, it will be understood that various modifications may bemade without departing from the spirit and scope of the invention. Forexample, a similar concept can be used with tax credits if a taxingauthority specifically passed legislation or regulations to instituteprograms that issue such credits or the concept could be used to fundresearch itself in addition to providing funding for patent or other IPprograms. In addition, agreements could be set up in which the sharesheld by investors can be donated to other non-profits, besides thenon-profit that funded the research. In that situation, those othernon-profits could redeem their shares for cash in a similar manner asthe non-profit that funded the research does. Other embodiments arewithin the scope of the following claims.

1. A computer-implemented method comprising: establishing a fund to hold interests in intellectual properties associated with a non-profit organization; recording by a computer receipt of investments from investors to add to the fund, the investments funding acquisition of the intellectual properties by the non-profit organization; by a computer, storing information regarding the investments, rights in intellectual properties, and the investors into a database; calculating by the computer an initial valuation for a number of shares in the fund, the number of shares and value for the shares based on a value of investments received from investors; and recording by the computer a distribution of the shares in the fund, with a portion of the shares distributed to investors and a remaining portion distributed to the non-profit organization.
 2. The method of claim 1 further comprises: recording by the computer a donation of shares in the fund to the non-profit; delivering a confirmation of the donation; and by the computer, storing information pertaining to the donation in the database, to reduce the number of shares in the fund held by investors and to increase the number of shares in the fund held by the non-profit organization.
 3. The method of claim 1 wherein the intellectual properties are patents.
 4. The method of claim 1 further comprising: by a computer executing a valuation program to value shares in the fund.
 5. The method of claim 1 further comprising generating an agreement between the investors and the non-profit organization, the agreement being a legally binding document; and by a computer, storing the agreement in an electronic form in the database.
 6. The method of claim 1 wherein providing the fund comprises providing a first fund to fund the acquisition of the intellectual properties by the non-profit organization over a specified first time period, the method further comprising providing additional funds that hold corresponding additional interests in additional potential intellectual properties of the non-profit organization to be obtained or obtained over corresponding, additional subsequent time periods; and by a computer, storing information pertaining to the first fund and the additional funds in the database.
 7. The method of claim 1 further comprising generating reports that render information that comprises: the fund for which an investor has invested; a valuation of the shares in the fund; changes in ownership of shares in the fund; and profits generated by sales and/or licensing of intellectual properties in the fund.
 8. The method of claim 1 further comprising; accrue tax deductions for the investor after the investor receives the shares in the fund.
 9. The method of claim 1 further comprising: recording by the computer information related to a donation by the investors by shares in the fund immediately after investing by the investors; determining tax deductions based on the initial valuation of the shares in the fund that is related to the initial investment made by the investors.
 10. The method of claim 1 wherein the interests in the potential intellectual properties comprise a right to receive royalties from licensing the acquired intellectual properties.
 11. The method of claim 1 wherein the non-profit organization is a college or university.
 12. The method of claim 1 wherein tax deductions can be taken by the investors after donating shares in the fund to the non-profit, based on a valuation that is determined at the time of donating the shares in the fund to the non-profit.
 13. The method of claim 1 further comprising: allowing, the investors to donate shares in the fund after investing by the investors, wherein tax deductions are based on an initial valuation of the shares in the fund that is related to the initial investment made by the investors.
 14. The method of claim 1 further comprising: allowing the investors to donate shares in the fund after acquisition of intellectual property assets in the fund and after a valuation of the fund that is subsequent to the initial evaluation of the shares in the fund, and wherein tax deductions are based on the subsequent valuation of the shares in the fund, which is related to a value ascribed to assets in the fund.
 15. The method of claim 1 further comprising allowing the investors to donate the shares to the non-profit.
 16. The method of claim 1, further comprises: recording by computer information related to acquisition of intellectual property assets subsequently valuing by the computer the shares of the fund according to a value of acquired intellectual property assets in the fund and remaining portions of investments received from investors; and redeeming by the computer the shares in the fund based on the subsequent valuation of the shares in the fund.
 17. The method of claim 16 wherein valuing comprises: by a computer, determining a valuation of the shares in the fund based on intellectual property assets in the fund by executing a valuation model that applies valuation principles to the intellectual property assets in the fund; and reporting information concerning the value of fund shares to the investors of the fund.
 18. A system for administering a funding mechanism for funding IP acquisition for a non-profit, the system comprising: at least one computer system comprising a processor and memory, the system configured to receive information regarding: a fund to hold interests in potential intellectual properties associated with a non-profit organization; investments from investors to add to the fund to fund the non-profit organization to acquire intellectual properties; the computer configured to: calculate by the computer a valuation of shares in the fund based on investments received from investors and a number of shares; receive by the computer information related to a donation to the non-profit from at least one investor of investor shares in the fund; calculate by the computer based on the information a value of a tax deduction for the donation; and store information regarding the valuation of shares in the fund, the number of shares and the investments, and rights in intellectual properties, and identifying information of the investors into a database.
 19. The system of claim 18 wherein the system is further configured to calculate a valuation of the shares in the fund, is configured to calculate the valuation based on the assets in the fund executing a valuation model that applies valuation principles to the assets in the fund to determine the valuation of the fund shares.
 20. The system of claim 19 wherein the system is further configured to report information concerning the value of fund shares to the investors of the fund.
 21. The system of claim 18, further configured to: record a redemption of the shares in the fund based on the valuation of the shares in the fund.
 22. The system of claim 18, further configured to: produce a confirmation of the donation; and store information pertaining to the donation in the database, to reduce the number of shares in the fund held by investors.
 23. The system of claim 18 wherein the intellectual properties are patents.
 24. The system of claim 18, further configured to: execute a valuation program to value shares in the fund.
 25. The system of claim 18, wherein the fund is a first fund to fund the acquisition of the intellectual properties by the non-profit organization over a specified first time period, the system further configured to: provide additional funds that hold corresponding additional interests in additional potential intellectual properties of the non-profit organization to be obtained or obtained over corresponding, additional subsequent time periods; and store information pertaining to the first and additional funds in the database.
 26. The system of claim 18, further configured to: determine a valuation of the shares in the fund based on assets in the fund by execution of a valuation model by the system, the valuation model applying valuation principles to the assets in the fund; and report information concerning the value of fund shares to the investors of the fund.
 27. A computer program product tangibly embodied on a computer readable storage device, the computer program product comprising instructions stored on the storage device for administering a fund that funds a non-profit organization to acquire intellectual properties, the instructions executable by a processor to cause the processor to: access information regarding a fund that holds interests in potential intellectual properties associated with a non-profit organization, investments from investors that are added to the fund to fund the non-profit organization to acquire the intellectual properties; calculate a valuation of shares in the fund based on the investments received from investors and a number of shares in the fund; receive information related to a donation to the non-profit from at least one investor of investor shares in the fund; calculate based on the information related to the donation a value of a tax deduction for the donation; and store information regarding the valuation of shares in the fund, the number of shares and the investments, and rights in intellectual properties, and identifying information of the investors into a database.
 28. The computer program product of claim 27 further comprises instructions to: report information concerning the value of fund shares to the investors of the fund.
 29. The computer program product of claim 27 wherein instructions to calculate further comprise instructions to: record information related to acquisition of intellectual property assets; and execute a valuation model that applies valuation principles to the intellectual property assets in the fund to determine a subsequent valuation of the fund.
 30. The computer program product of claim 27, further comprising instructions to: redeem the shares in the fund based on the valuation of the shares in the fund.
 31. The computer program product of claim 27, further comprising instructions to: record a donation of shares in the fund to the non-profit; deliver a confirmation of the donation; and store information pertaining to the donation in a database to reduce the number of shares in the fund held by investors.
 32. The computer program product of claim 27 wherein the intellectual properties are patents.
 33. The computer program product of claim 27, further comprising instructions to: execute a valuation program to value shares in the fund.
 34. The computer program product of claim 27 wherein the fund is a first fund to fund the acquisition of the intellectual properties by the non-profit organization over a specified first time period, further comprising instructions to: provide additional funds that hold corresponding additional interests in additional potential intellectual properties of the non-profit organization to be obtained or obtained over corresponding, additional subsequent time periods; and store information pertaining to the first and additional funds in the database.
 35. The computer program product of claim 27, further comprising instructions to: determine a valuation of the shares in the fund based on assets in the fund by execution of a valuation model, the valuation model applying valuation principles to the assets in the fund; and report information concerning the value of fund shares to the investors of the fund. 